PulteGroup (NYSE:PHM) Low Margins, Land Positions Dragging on Them

Barclays (NYSE:BCS) says they see PulteGroup (NYSE:PHM) doing some right things to eventually return to profitability, they see continuing pressure on gross margins and their land positions as factors which will continue to weigh them down.

"We recently had the opportunity to meet with members of Pulte management. Given the company's recent disappointing 3Q10 earnings, we believe that this was an opportune time to reconnect with management on the company's strategy...Although we believe PHM is on the right track to regaining profitability, we are concerned that its land position combined with lagging gross margins is riskier in a slower recovery," said Barclays.

Barclays maintains an "Equalweight" rating on PulteGroup, which closed at $6.68 on Monday, losing $0.03, or 0.45 percent. Barclays lowered their price target on them from $10 to $9.